The Time Period Assumption States That

question 56

Multiple Choice

The time period assumption states that

• A) a transaction can only affect one period of time.
• B) estimates should not be made if a transaction affects more than one time period.
• C) adjustments to the enterprise's accounts can only be made in the time period when the business terminates its operations.
• D) the economic life of a business can be divided into artificial time periods.

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Definitions:

Grapevine Communication

Informal channels of workplace communication that are not officially sanctioned by the organization.

Positive Gossip

Sharing favorable or flattering information about someone or something that is not malicious or harmful.

Internet

A global network of interconnected computers and servers that enables communication and data exchange across the world.

Water Cooler Conversations

Informal discussions that occur among employees within a workplace, often around the water cooler, which can impact morale and culture.